We thrive on Innovation...

Creating an Empowerment Catalyst

Knowlege applied...

Speed up the process of empowerment

Experts at your call...

Free BBBEE Advice

  1. Acronyms
  • DTI: Department of Trade and Industry
  • BBBEE: Broad- Based Black Economic Empowerment
  1. Definitions
  • “ABET” refers to adult basic education and training as determined by the National Qualifications Authority in accordance with Success Indicator 2.7 of the National Skills Development Strategy.
  • “Acceptable Valuation Standard” means a valuation in Rand value of a Qualifying Residual Contribution, whether monetary or non-monetary, relevant to measurement under this statement. All such valuations shall be undertaken in accordance with normal valuation methodologies that represent standard market practice.
  • “Accreditation Body” means: SANAS
  • “Act” means the Broad-Based Black Economic Empowerment Act of 2003.
  • “Adjustment Factor” means the adjustment factor.
  • “Affected Decision Makers” mean individuals who are tasked with making economic.
  • Associated Enterprise” means an Enterprise with which a Measured Enterprise has concluded a Qualifying Transaction.
  • BEE Procurement Recognition Level” means the percentage BEE Procurement Recognition Levels as determined: 1.3.1 in relation to Enterprises which are neither Qualifying Small Enterprises nor Exempted Micro Enterprises, by reference to the mechanism for determining that level set out in Code 000 Statement 000; 1.3.2 in relation to Qualifying Small Enterprises, by reference to the mechanism for determining that level set out in Code 1000 Statement 1000; and 1.3.3 in relation to Exempted Micro Enterprises, a deemed BEE Procurement Recognition of 100% and BEE Status of Level 4 Contributor.
  • BEE Procurement Spend” means the BEE procurement spend determined in accordance with the provisions.
  • “BEE Status” means the compliance band.
  • “BEE” means black economic empowerment.
  • “Benefit Scheme” means a Broad-Based Ownership Scheme in which more than 50 natural persons:
  • “Black new entrants” means a black Participant or Participants who:
    • “Black people with disabilities” means black people who also satisfy the criteria in the definition of ‘persons with disabilities’ set out in paragraph 5.1 of the “Code of Good Practice on the Employment of People with Disabilities” issued in terms of section 54(1)(a) of the Employment Equity Act.
    • “Black people” means African, Coloured or Indian persons who are natural persons.
    • “Black aged people” means black people who are also aged people as defined in the Aged Persons Act of 1967.
  • “Black unemployed people” means black people who are:
    • “Black workers” means black people who are employees occupying the occupational levels of “skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents”, “semi-skilled and discretionary decision making” and “unskilled and defined decision making” as outlined in the EEA9.
    • “Black youth” means black persons who are youth as defined in the National Youth Commission Act of 1996.
  • Board” means that person appointed by the Participants of a Measured Entity to undertake the management control of the Measured Entity. The Board is distinguishable from the Senior and Other Top Management by virtue of the fact that Senior and Other Top Management are primarily active in the operational day-to-day management while the Board is primarily active in the control function of the Measured Entity. This does not imply that members of the Board cannot also be Senior and Other Top Management. The term Board does not include persons appointed to that body as alternates.
  • Broad-Based Ownership Scheme” means a collective ownership scheme constituted with the view to facilitating the participation of specified natural persons in the benefits flowing from the ownership by that scheme or by its fiduciaries of an Equity Interest in an Enterprise.
  • “Codes” means this Statement and all Codes of Good Practice issued in terms of section 9 of the Act.
  • Companies Act” means the Companies Act 61 of 1973, as amended or substituted.
  • “Company limited by guarantee” means a company as referred to in section 19(1)(b) of the Companies Act.
  • Consolidated Verification Certificate” means a Verification Certificate.
  • “Co-operative” means a co-operative as defined in the Co-operatives Act of 2005 and includes, without limitation any of the specific types of co-operatives specified in Schedule 1 of that Act.
  • “Corporate Social Investment” refers to an enterprise’s contribution to society and community that are extraneous to its regular business activities.
  • Critical Skills” are those skills to be identified by each SETA in accordance with Success Indicator 1.1 (Lever 1.1) of the National Skills Development Strategy. The Critical Skills for each Measured Entity will be determined by reference to Critical Skills identified by the relevant SETA having jurisdiction over each of the Measured Entity’s spheres/areas of operation.
  • “Deemed Current Value” means the result of the formula.
  • “Deemed Micro Enterprise Recognition Level” means BEE Procurement Recognition.
  • Deemed Participant” means a natural person.
  • “Distribution Scheme” means a Broad-Based Ownership Scheme in which more than 50 natural persons are intended to receive distributions from the scheme that are payable from the Economic Interest received by the scheme or by the fiduciaries of the scheme;
  • “EBITDA” means earnings before interest, tax, depreciation and amortisation interpreted in accordance with South African Generally Accepted Accounting Practice.
  • “Economic Interest” means a Participant’s Claim against the Enterprise representing a return on ownership of the Enterprise, measured in accordance with the Flow-Through and Modified Flow-Through Principles. In this regard, a Participant’s entitlement to receive any payment or part payment on the Participant’s Claim from a Measured Enterprise that is not in the nature of a return on ownership in that Measured Enterprise.
  • “Elements” means the measurable quantitative or qualitative elements of BEE compliance.
  • “Employee Scheme” means a Broad-Based Ownership Scheme in which a group of employees representing more than 90% of the employees of an Enterprise or 90% of the employees in a particular occupational category(ies) (as referred to in form EEA9 the Employment Equity Act) within an Enterprise. Employee Schemes may have the characteristics of Benefits Schemes or Distribution Schemes or hybrids of both.
  • “Employee” bears the same meaning as assigned in the Employment Equity Act. For the avoidance of doubt, a member of the Board who is not employed in the day-to-day management of a Measured Entity is not an Employee of that Measured Entity notwithstanding the fact he/she may be remunerated for the performance of that function.
  • Employment Equity Scorecard” means the scorecard used for the measurement of employment equity contributions.
  • “Employment Equity Act” means the Employment Equity Act of 1998, as amended.
  • “Enterprise” means a natural or a juristic person, or any form of Co-operative, conducting a business, trade or profession in the Republic of South Africa.
  • “Equity Interest” means the entitlement of a Participant to receive an Economic Interest and to exercise a Voting Right in an Enterprise.
  • Equivalency Percentage” means a percentage ownership performance in an Associated Enterprise arising from a Qualifying Transaction with a Measured Enterprise in respect of those of the elements in the Ownership Scorecard referred to in paragraph 7.2 and calculated in accordance with paragraph 7. The Equivalency Percentage may be applied by the Measured Enterprise in its own Ownership Scorecard as being a percentage of Equity Interest held by notional black owners in that Measured Enterprise.
  • Excessive Rate” means a rate of interest charged on any loan.
  • Executive Manager” means a manager who falls within the definition of “executive director” as specified in the King Report.
  • Executive Members of the Board” mean those members of the Board who fall within the definition of “executive director” specified in the King Report.
  • “Exercisable Voting Right” means a Voting Right of a Participant that is not subject to any limitation.
  • “Franchisee” means an Enterprise that has acquired the right to trade as a
  • “Franchising Arrangement” means a franchise arrangement
  • “Franchisor” means Enterprise holding the rights to a franchise a Franchising
  • Fronting Risk Indicators” means the list of risk indicators.
  • “Generic Scorecard” means the balanced BEE scorecard.
  • Global Policy” means a globally and uniformly applied restriction upon the alienation of Equity in or the sale of businesses of the Multinational Affiliates of a Multinational Business imposed by that Multinational Business or by a regulator which has lawful jurisdiction over that Multinational Business or by any law of application to the Multinational Business. Where the Global Policy is imposed by a regulator or by law, such Global Policy must substantially have been in existence prior to the date of promulgation of the Act.
  • “Group Structure” means an ownership relationship whereby one or more Measured.
  • “Holding Company” shall be interpreted mutatis mutandis by reference to the definition.
  • Inception Date” means a date specified by a Measured Entity as being the date from which its residual contributions should be measured where that Measured Entity has initiated such contributions prior to the commencement date of this statement. The Inception Date shall not be a date earlier than 5 years prior to the commencement date of this statement.
  • “Independent Non-Executive Board Members” means those members of the Board who fall within the definition of “independent director” specified in the King Report.
  • “Industry Body” means a private sector based Verification Agency recognized by the Minister.
  • “Industry Specific Contribution” means the qualifying residual contributions that are unique to the industry in which enterprises operates. For the purposes of this statement an industry may be grouped in major divisions in accordance with the Standard Industrial Classification Coding System used by Statistic South Africa.
  • “Interim Constitution” means the Constitution of the Republic of South Africa Act of 1993.
  • “King Report” means the King Report on Corporate Governance for South Africa 2002 authored by the King Committee on Corporate Governance of the Institute of Directors in Southern Africa.
  • “Learnerships” refer to the skills development programs approved by the relevant SETA having jurisdiction over each of the Measured Entity’s spheres/areas of operation and which are fully certified in accordance with the National Qualifications Framework maintained in terms of South African Qualifications Authority Act
  • Leviable Amount” bears the meaning as defined in the Skills Development Levies Act of 1999 as determined in accordance with the provisions of the Fourth Schedule to the Income Tax Act of 1962; 1.4
  • “Maximum Rate” means the rate specified in respect of the maximum annual finance
  • “Measured Enterprise” means an Enterprise subject to measurement under this statement.
  • “Measured Entity” means an Enterprise as well as any organ of state or public entity subject to measurement under Codes.
  • “Multinational Affiliate” means a business owned or controlled by a Multinational Business or a South African Multinational which operates in a particular country or in a particular region other than the country and/or region in which that Multinational Business or South African Multinational maintains its headquarters.
  • “National Skills Development Strategy” means the national skills development strategy referred to in section 5(1)(a)(ii) of the Skills Development Act as further qualified in the strategy released by the Department of Labour in March 2005, covering the period 01 April 2005 to 31 March 2010.
  • “National Small Business Act” means the National Small Business Act 102 of 1996, as amended or substituted.
  • Net Equity Interest” The accumulated net economic interest in the hands of the black shareholders, after the deduction of monies owed by these black shareholders.
  • “Non-Recoverable Contribution” means the monetary value of Qualifying Enterprise Development Contributions made by the Measured Entity to the Beneficiary Entity in a form of grants, donation, discounts and other similar quantifiable benefits which are not recoverable by the Measured Entity.
  • Occupational Levels” are as outlined in the EEA9 form issued as a regulation under the Employment Equity Act. For ease of reference, the Occupational Levels relevant to this statement are those specified below and exclude any of the other Occupational Levels specified in EEA9.
  • “Occupational Levels” means the occupational levels specified in Form EEA9 gazetted as a regulation under the Employment Equity Act.
  • “Other Top Management” means Employees of a Measured Entity, other than Senior Top Management who are appointed by or upon the authority of the Board of that Measured Entity to undertake the day to day management of that Measured Entity and who are actively involved in the development and/or implementation of the Measured Entity’s strategy insofar as it relates to their area of responsibility. This definition should be read in conjunction with the Occupation Levels, having specific regard to the Occupational Level of Top Management.
  • Owner-Manager” means an individual who holds equity representing at least 5% of all equity in the Measured Enterprise (both in relation to voting rights and economic interest as referred to in Code 1100 Statement 1100) and who is also an Executive Manager.
  • “Ownership Fulfilment” refers to any conditions that might prevent the black shareholder from achieving his/her full net equity interest.
  • Ownership Scorecard” means the scorecard used for the measurement of ownership.
  • “Participant’s Claim” means any claim to payment that a Participant enjoys in relation to a Measured Enterprise, including claims enjoyed through one or more other Enterprises.
  • Public Finance Management Act” means the Public Finance Management Act.
  • QSE Enterprise Development Scorecard” means the scorecard.
  • “QSE Management Control Scorecard” means the scorecard.
  • QSE Ownership Scorecard” means the scorecard.
  • QSE Residual Scorecard” means the scorecard.
  • Qualifying Enterprise Development Contributions” means Contributions actually initiated and implemented in favour of Beneficiary Entities by a Measured Entity with the specific objective of assisting and/or accelerating the development, sustainability and ultimate financial and operational independence of such Beneficiary Entities through the expansion of those Beneficiary Entities’ financial and/or operational capacity.
  • “Qualifying Residual Contributions” means monetary or non-monetary contributions actually initiated and implemented in favour of Contribution Beneficiaries by a Measured Entity with the specific objective of facilitate access to the economy for Contribution Beneficiaries and is inclusive of both Corporate Social Investment and Industry Specific Contributions.
  • Qualifying Small Enterprise Scorecard” means the balanced BEE scorecard.
  • “Qualifying Small Enterprise” means an enterprise that qualifies for measurement under the qualifying small enterprise scorecard.
  • “Qualifying Transaction” means the sale of a business or assets from a Measured Enterprise to an Associated Enterprise that meets the requirements.
  • “Realization Points” means the sum of the Ownership Fulfilment point and the Net Equity Interest points, as referred to in the ownership scorecard.
  • “Recoverable Contribution” means the monetary value of Qualifying Enterprise Development Contributions made by the Measured Entity to the Beneficiary Entity that must be repaid or returned to the Measured Entity upon the happening of a specified event.
  • Related Enterprise” of a Measured Entity means an Enterprise:
  • “Related Person” of a measured Enterprise means another person:
  • “Section 21 Company” means a company incorporated under section 21 of the Companies Act.
  • “Sector Code” means a Code in series 800 gazetted by the Minister under section 9 of the Act with a view to giving effect to the specific requirements and circumstances applicable to a particular sector.
  • Senior Top Management” means Employees of a Measured Entity who are appointed by or upon the authority of the Board of that Measured Entity to undertake the day to day management of that Measured Entity and who have individual responsibility for the overall management and for the financial management of that Measured Entity and who are actively involved in the development and/or implementation of the Measured Entity’s strategy. Common examples of Senior Top Management include, without limitation, chief executive officers, chief operating officers and chief financial officers. This definition should be read in conjunction with the Occupation Levels, having specific regard to the Occupational Level of Top Management;
  • Separated Verification Certificate” means a Verification Certificate as “applicable interest rate” means the prime interest rate as determined by the primary banker of the Measured Entity on the basis of the REPO rate set by the South African Reserve Bank.
  • “SETA” means a sector education and training authority,
  • “Skills Development Spend” comprises the amount of money that a Measured Entity spends on skills development that is over and above any of skills development levy payable in accordance with the Skills Development Levies Act determined in accordance with the provisions of the Fourth Schedule to the Income Tax Act.
  • Strategy Document” means the document entitled “South Africa’s Economic Transformation – A Strategy for Broad-Based Black Economic Empowerment” published by the department of trade and industry in March 2003, subject to any amendment or substitution in terms of section 11 of the Act.
  • “Subsidiary” shall be interpreted mutatis mutandis by reference to the definition provided.
  • “Superior Contributor to BEE” is a Level One to Level Four Contributor to BEE.
  • “Supplier” means any supplier or service provider to a Measured Entity, regardless of whether such supplier or service provider may be a Qualifying Small Enterprise or an Exempted Micro Enterprise, provided that a portion of the supply or service provision made by that supplier or service provider falls within the definition of Total Measured Procurement Spend,
  • “Target” means the targets attributed to the various Elements in the Generic Scorecard.
  • Top Management” is a collective term encompassing Senior Top Management.
  • “Total Measured Procurement Spend” means total procurement spend of the Measured Entity.
  • “Transfer pricing” means transactions where goods and/or services are supplied to.
  • “Transformation Charters” means the sectoral transformation charters referred to in section 12 of the Act.
  • Unincorporated Joint Venture” means a joint venture between two or more Measured Entities which is not constituted in the form of an incorporated juristic person; In this statement, unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Act bears the same meaning.
  • “Verification Agency” means a BEE Verification Agency accredited in terms of this statement.
  • “Verification Certificate” means a BEE certificate issued by a Verification Agency in compliance with the Codes.
  • “Voting Right” means the Control of the Enterprise, through the exercise of voting rights at shareholder meetings
  • Warehousing Fund” means a fund meeting the requirements.
  • “Weighting” means the weightings attributed to various Elements in the Generic Scorecard.

Please fax forms back to (011) 836 0535 or mail it to our Clients Manager at:

info@empoweryst.co.za, or call 0861 EMPOWA (367692) for assistance with the application.